Review of Impact Partnership to be carried out

A strategic review of the Impact Partnership is to be carried out - the Impact Partnership manages several of Rochdale Council’s Services, including highways and engineering, ICT, contact centre and payroll.

The partnership between the Council and Mouchel was set up in 2006 to run for a 15 year period.

Mouchel is in trouble with large debts, the share price having dropped and their Chief Executive and Chairman having resigned.

Locally, there has been long term criticism of the Impact Partnership's performance and pricing.

The Leader of Rochdale Council, Councillor Colin Lambert, announced that a review will take place to address “performance issues,” adding that this is an “extremely challenging time for the Council and its ‘strategic partner.’

Rochdale Online understands the review will look at whether or not the services currently provided by the Impact Partnership need to be brought 'in house'.

In a statement, Councillor Lambert, said: “The Council has for some time been working with Impact on performance issues and more recently the Partnership have engaged in a focused mechanism for addressing these concerns.

“As councillors are aware we need to address the financial challenges ahead and we are currently reviewing all spend with the Partnership to ensure the Council receives value for money.

“While doing this exercise members of Council will be aware that Mouchel share prices have dropped, their Chief Executive and Chairman have resigned.

“KPMG are now working with Mouchel to satisfy the banks about the company debts.

“We continue to monitor the situation closely.

“I have spoken to Sir Michael Lyons and agreed we will have a joint review to bring about a satisfactory conclusion to all issues and report on all options.

“At the same time we are working closely with Mouchel/Impact to develop plans that ensure service continuity in the event of any changes which affect Mouchel and Impact.”

Councillor Lambert concluded: “It is important in any discussions that there is one channel of communication and I would ask that all Impact matters are filtered through Linda Fisher who is the Client Manager for Impact.

“Council will agree that this is an extremely challenging time for the Council and its strategic partner.”

In a joint written statement, Rochdale Borough Council’s Chief Executive Roger Ellis, and Impact Partnership’s Managing Director Andrew Kendall said: “The Leader of the Council and Sir Michael Lyons, Mouchel’s Senior Independent Director have agreed to carry out a strategic review of the Partnership.

“No decisions have been taken to bring services in-house. Both parties will be meeting shortly to continue constructive dialogue.”

In a statement about its financial position to the City of London at the weekend, Mouchel said: “The lending banks have informed the Board that they are fully supportive of the Board and its executive team which believe that Mouchel has strong and valuable businesses which need to be supported by a stable, long-term financial structure.”